A planning application for upgrades to the Virginia Wastewater Treatment Plant is expected to be submitted later this month.
Irish Water says the long-awaited project is nearing substantial completion on the detailed design stage.
At a recent meeting of Ballyjamesduff MD, Director of Services Eoin Doyle said the delays were holding down the development of the town, at a time when there is a need for housing.
The upgrades are expected to be completed in Quarter four of 2024.
Councillor TP O'Reilly says the system needs to grow with the town.